Title: Exercise 9-6
QA_Ori:
a. Computation of the estimated balance of the allowance for uncollectibles:
Not due: $396,000 x 0.01 = $ 3,960
1 to 30: 90,000 x 0.02 = 1,800
Title: Exercise 9-6
b.
Dec. 31 Bad Debts Expense……………………………………….. 8,220
Allowance for Doubtful Accounts…………………. 8,220
To record estimated bad debts.*
*Unadjusted balance………………………………….$ 3,600 credit
c.
Dec. 31 Bad Debts Expense……………………………………….. 11,920
Allowance for Doubtful Accounts…………………. 11,920
To record estimated bad debts.*
*Unadjusted balance………………………………….$ 100 debit
Title: Exercise 9-7
QA_Ori:
a. Computation of the estimated balance of the allowance for uncollectibles:
b.
Dec. 31 Bad Debts Expense……………………………………….. 13,650
c.
Dec. 31 Bad Debts Expense……………………………………….. 26,650
Allowance for Doubtful Accounts…………………. 26,650
To record estimated bad debts.*
Title: Exercise 9-8
QA_Ori:
Feb. 1 Allowance for Doubtful Accounts…………………………….. 6,800
June 5 Accounts Receivable—Oakley……………………………….. 900
June 5 Cash…………………………………………………………………… 900
Title: Exercise 9-9
QA_Ori:
a. Expense is 1.5% of credit sales
Dec. 31 Bad Debts Expense…………………………………………. 4,500
b. Expense is 0.5% of total sales
Dec. 31 Bad Debts Expense…………………………………………. 6,000
c. Allowance is 6% of accounts receivable
Dec. 31 Bad Debts Expense…………………………………………. 12,500
Allowance for Doubtful Accounts………………….. 12,500
Title: Exercise 9-10
QA_Ori:
July 4 Accounts Receivable……………………………………….. 7,245
Sales……………………………………………………….. 7,245
To record sales on credit.
4 Cost of Goods Sold…………………………………………………5,000
Merchandise Inventory……………………………………… 5,000
To record cost of sales.
To record cash from a loan.
Note to Financial Statements
Accounts receivable in the amount of $12,500 are pledged
as security for a $10,000 note payable to Main Bank.
Title: Exercise 9-11
QA_Ori:
Nov. 1 Notes Receivable—K. White………………………….. 6,000
Apr. 30 Cash……………………………………………………………. 6,240
Notes Receivable—K. White…………………….. 6,000
Title: Exercise 9-12
QA_Ori:
Mar. 21 Notes Receivable—T. Jackson………………………….. 9,500
Sept. 17 Accounts Receivable—T. Jackson…………………….. 9,880
Interest Revenue……………………………………….. 380
Dec. 31 Allowance for Doubtful Accounts……………………….. 9,880
Title: Exercise 9-13
Instructor note: The first printing of the book for the December 13 transaction
erroneously read “60-day” note, but should have read “45-day” note. This does not
impact Exercise 13, but does impact the January 27 entry for Exercise 14.
QA_Ori:
2012
Dec. 13 Notes Receivable—M. Lee……………………….. 9,500
Dec. 31 Interest Receivable………………………………….. 38
Ra
Title: Exercise 9-14
Instructor note: The first printing of the book for the December 13 transaction of
Exercise 13 erroneously read “60-day” note, but should have read “45-day” note.
This does not impact Exercise 13, but does impact the January 27 entry for Exercise
14. An erroneous marginal check figure of Dr. Cash 9,627 should correctly read Dr.
Cash 9,595.
QA_Ori:
2013
Jan. 27 Cash……………………………………………………………… 9,595
Interest Revenue*………………………………………. 57
Mar. 3 Notes Receivable—Tomas Co………………………….. 5,000
17 Notes Receivable—H. Cheng…………………………… 2,000
Apr. 16 Accounts Receivable—H. Cheng………………………. 2,015
May 1 Allowance for Doubtful Accounts……………………….. 2,015
June 1 Cash……………………………………………………………… 5,125
Interest Revenue……………………………………….. 125
Title: Exercise 9-15
Instructor note: The first printing of the book has the far-right-hand column
erroneously titled “2010” that should be titled “2011”.
QA_Ori:
Year 2012 accounts receivable turnover:
Year 2013 accounts receivable turnover:
QA_Ori: Analysis: Raheem Company turned over its accounts receivable 0.6 (9.4 – 8.8)
Title: Exercise 9-16
QA_Ori:
($ in millions)
a. Expense is 0.4% of total revenues
Dec. 31 Bad Debts Expense…………………………………………. 37,263
b. Allowance is 2.1% of trade receivables
Dec. 31 Bad Debts Expense…………………………………………. 34,681
Allowance for Doubtful Accounts………………….. 34,681
To record estimated bad debts.*
*Unadjusted balance…………………………………………………… 10,000 credit
Estimated balance (2,127,682 x 0.021)……………………….. 44,681 credit
Required adjustment…………………………………………………. 34,681 credit
$335,280
($41,400 + $34,800)/2
$405,140
($44,800 + $41,400)/2
Title: Problem 9-1A
QA_Ori:
June 4 Accounts Receivable—N. Morris……………………………. 650
Sales…………………………………………………………….. 650
To record sales on credit.
4 Cost of Goods Sold……………………………………………………. 400
Merchandise Inventory………………………………………….. 400
To record cost of sales.
